Clarification: Washington Mutual-Bankruptcy story

AP News
Posted: Mar 02, 2012 3:46 PM
Clarification: Washington Mutual-Bankruptcy story

In a story about a bankruptcy judge approving Washington Mutual Inc.'s reorganization plan, The Associated Press reported that, following court-ordered mediation, certain hedge funds involved in the case had agreed to provide $75 million in cash and a $125 million credit facility to the reorganized company.

The story should have made clear that the hedge funds and all other holders of Washington Mutual Inc. senior and senior subordinated notes agreed to allow the reorganized company to keep the $75 million in cash. That money otherwise would have been paid to the bondholders.